If the cross-price elasticity of two goods is negative, then the two goods are
a. necessities.
b. complements.
c. normal goods.
d. inferior goods.
b
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What is the Laffer curve and why is it unlikely that the United States is on the "wrong" side of it?
What will be an ideal response?
An economist would describe college fees as
a. an investment in human capital. b. a transfer payment. c. a waste of parents' money. d. an economic loss.
Which of the following would be the most typical behavior for landlords renting rent-controlled apartments?
a. financing the construction of more housing b. earning large profits from rentals c. lowering the rents for apartments d. avoiding routine maintenance
If the economy is operating at a point at which short-run aggregate supply is horizontal, then
A. real GDP cannot contract. B. real GDP cannot expand. C. increases in aggregate demand do not increase the price level. D. then increases in aggregate demand do not increase real GDP.